INDIA'S RELIGARE TO FINALISE BANK PARTNER FOR HEALTH INSURANCE

After parting ways with Switzerland-based Swiss Re last year, Indian financial services firm Religare Enterprises (BSE:532915) is now in the process of finalising a domestic bank as partner for its proposed health insurance business.

"We are in talks with some of the domestic banks, both private and public sector, for the partnership," Religare Enterprises group chief finance officer Anil Saxena said on Tuesday.

Banks can give huge platform for distribution, Saxena, who has been inducted in the board of the company, said.

"Hopefully, we should be filing application with IRDA very shortly," he said, adding that the company has already appointed Anuj Gulati as chief executive officer and a team is there.

It is to be noted that Religare Enterprises parted ways with Swiss Re in September last year. The company had signed a non-binding term sheet with Swiss Re for a health insurance joint venture on June 1, 2009.

However, both the companies mutually decided not to proceed with the proposed joint venture.

Religare operates in the country from 1,837 locations across 498 cities and towns.

In 2007-08, the health insurance industry collected premiums totalling more than Rs 51 billion (US$7.4 billion), despite only a small percentage of the Indian population (around two per cent) having private health insurance cover.

Health insurance has seen a compound annual growth rate (CAGR) of around 40 per cent in the six years to 2007-08. It is one of the fastest-growing non-life insurance segments.

Meanwhile, Religare Enterprises carried out top-level rijig with two of its promoters Malvinder Mohan Singh and Shivinder Mohan Singh deciding to resign from the board.

Malvinder has relinquished his position as Chairman of the firm while Shivinder has quit as director from Religare Enterprises (REL).

The company has appointed Sunil Godhwani as chairman and managing director, while Sachindra Nath will assume the role of CEO at REL.